NGAS Resources (NGAS)

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NGAS Reports Second Quarter 2008 and First Half Results
Thursday August 7, 4:05 pm ET
-- Earnings per Share were $0.06 in the quarter compared to ($0.03)
-- Oil and Gas Production at Record Level
-- 66 Percent Increase in Oil and Gas Revenue


LEXINGTON, Ky.--(BUSINESS WIRE)--NGAS Resources, Inc. (Nasdaq: NGAS - News) today reported a 33 percent increase in second quarter 2008 total revenue to $21.3 million compared to $16.1 million in the comparable quarter in 2007. This increase was primarily attributable to a 66 percent increase in oil gas production revenue reflecting a 23 percent increase in production volumes and higher commodity prices. Gas gathering, compression and processing revenue rose 34 percent in the period due to an increase in moving third party gas as well as increased liquids processing fees.


The Company reported net income of $1.5 million in second quarter 2008 compared with a net loss of $0.8 million in the same period of the prior year. Earnings per share were $0.06 in the current period compared to a per share loss of $0.03 in second quarter 2007. Discretionary cash flow was $6.7 million or $0.24 per share in second quarter 2008 compared to $3.0 million or $0.14 per share. (A reconciliation of this non-GAAP measure is provided at the end of this release.)

William S. Daugherty, President and CEO of NGAS Resources commented, "Our strong second quarter performance reflects the contributions from our horizontal drilling program which enabled us to deliver record production.” Mr. Daugherty added, “Based on the performance of our initial horizontal wells we plan to drill 20 such wells in the Devonian Shale this year and as many as 50 next year.”





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